MBA Dissertation Impact of Employee Satisfaction on Service Quality and Customer Satisfaction

It is vitally important for a company to keep employees satisfied. Employees that are engaged and satisfied are more likely to invest in the success of the business and have a high level of commitment and loyalty. Satisfied employees promote and support the company’s mission, strategy and brand. Research suggests satisfied employees have positive effects on a business’ customer base and corporate profitability. Assuming this empirical evidence is true, this study aimed at investigating the link between (1) employee satisfaction (2) customer satisfaction and (3) service quality. All three elements are considered to be the vital components of a business. Therefore, there was a scope of examining the relationship between these three aspects of a business so that understanding on the link of employee satisfaction with service profit chain is made. In order to make sufficient analysis to examine the relationship thorough understanding of each aspect upon empirical literature has been conducted. Leadership and planning, corporate culture, reward and recognition, training and development, motivation and benefit are considered to be the main principles of employee satisfaction. In order to examine the relationship quantitatively three hypotheses have been developed. The analytical procedure included series of statistical analyses. Although descriptive statistics and percentage analysis are some common statistical analysis but these analyses provided valuable insight on each factors considered. Most of the surveyed employees showed positive attitude towards their employer. However, one-way ANOVA analysis for income and education has also shown significant difference between the means of each variable. Regression analysis proved significantly positive relationship between employee satisfaction, customer satisfaction, and service quality. This study was also relevant to some empirical studies. The relationship between corporate culture, reward and recognition, and service quality did not exhibit a significant relationship which contradicts with some empirical studies. Considering the findings of this study it has been recommended that companies should develop internal metrics to understand employee satisfaction and review periodically. The aim of this study is to investigate the relationship between employee satisfaction and service profit chain of Vodafone UK.

Dissertation Objectives

  • To examine the relationship between employee satisfaction and service quality of Vodafone
  • To determine the relationship between service quality and customer satisfaction of Vodafone
  • To analyze the effect of employee satisfaction on customer satisfaction of Vodafone
  • To recommend Vodafone for required changes and how to implement proposed changes